American Airlines Q2 profits rise on record revenues
AMERICAN Airlines reported blowout second-quarter earnings on Thursday (Jul 20), benefiting from continually strong consumer demand and lower jet fuel costs.
The big US carrier followed rivals Delta Air Lines and United Airlines in lifting its full-year forecast following the robust spring quarter and as airports remain busy over the heady summer travel season.
Profits were nearly triple the year-ago level at US$1.4 billion, while revenues rose 4.7 per cent to US$14.1 billion, a record.
Results were boosted by a retreat in jet fuel prices, which were down 35 per cent from the year-ago level.
“It was another fantastic quarter for American, driven by the hard work of our team to deliver a reliable operation for our customers and the continued strong demand for our product,” said American Airlines chief executive Robert Isom.
“Our operation is performing at historically strong levels, and we have worked to refresh our fleet and build a comprehensive global network, all of which helped to produce record revenues in the second quarter.”
American highlighted a two-notch upgrade in its credit rating by Fitch to B+ from B-.
While that still rates American as “highly speculative” on the scale, Fitch praised American for its progress in paying down debt and its improving profitability outlook. AFP
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